Customer Lifetime Value Calculator

Discover how much your customers are actually worth so you can make educated marketing decisions

The problem with most marketing is that you don't know your return on investment (ROI). By calculating your customer lifetime value (LTV), you'll be able to start predicting ROI on your marketing spend.

The following calculator will help you find out the average LTV for your customer segments. For each field, just use an average number (if you have many customers who spend $10,000/year, and many others who spend $1,000/year, then just write $5,000 in the yearly revenue).

If your client has multiple customer segments, run each segment through the calculator so you know which one to target. Consider this:

  • Customer Segment #1 LTV: $1,500
  • Customer Segment #2 LTV:$3,500

If both segments are easy to convert, I'd suggest we target segment #2 because the return from each customer is so much higher.

Start by entering your data here:


 

Customer LTV Calculator

  • How many years does the average customer do business with you? (I recommend 5 years as your default)
  • Example: If you run a car dealership you may sell the customer a new car for $30,000. You might not sell them another car, but you'd sell them regular maintenance on the car (yearly revenue).
  • How much revenue does the average customer bring you per year?



  • Based on your previous inputs, here is the average value of your customers:

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